KUALA LUMPUR, 29 May 2017 – Media Prima Berhad (“Media Prima” or “The Group”), Malaysia’s leading fully-integrated media Group seeks to grow its digital and non-traditional revenue streams through strategic business initiatives launched in 2016 and early 2017.

Datuk Seri FD Iskandar, Group Chairman of Media Prima said, “The Group has initiated key initiatives in 2016 to enable new revenue streams while we consolidate our market share in the core advertising revenue. The Group had in 2016 launched a number of key ventures that are ‘Business to Consumers’ in nature such as our home shopping platform, CJ Wow Shop, the revamped online video streaming subscription service, tonton, mobile gaming and digital lifestyle applications for mobile users. More recently, the Group had also announced the acquisition of REV Asia Holdings Sdn Bhd which significantly strengthens Media Prima’s digital reach to derive revenue from the growth in digital advertising, ”.

He added that the Group had anticipated a prolonged period of market stagnation, with a flat or lower advertising revenue recorded by our media platforms with the exception of our Out-of-Home and Digital platforms. “Factors such as customer fragmentation, technological advancements, a shift in traditional advertising to digital media advertising and increased competition from new entrants and global media players continued to pose challenges to the Group during the first quarter of 2017,” said Datuk Seri FD Iskandar.

The Group announced today that it had recorded revenue of RM272.2 million and Loss After Tax (LAT) of RM41.4 million for the first quarter ended 31 March 2017. The Group recorded a reduction in revenue by 10% against the corresponding quarter of 1QFY16. This is attributed to the lower advertising and newspaper sales as traditional media platforms faced ongoing challenges of subdued ADEX and shift to digital media. While the Group has ventured into new digital and consumer based initiatives to complement the Group’s traditional media segments, these initiatives remain in the gestation period.

Dato’ Sri Amrin Awaluddin, Group Managing Director of Media Prima said, “The traditional media industry today is faced with declining Adex following the tough macroeconomic conditions, increased competition, technology disruptions and changes in consumer behaviour. The expected outlook for 2017 is equally as challenging. Nonetheless, we are cautiously optimistic about the potential of our new business initiatives even though they remain in a period of gestation. The launch of our home shopping business CJ Wow Shop, for instance, has helped cushion the decline in traditional revenue by contributing RM89.1 million over the last 12 months,”. He added the Group also plans to derive additional revenue streams by expanding its market base into regional markets via the Group’s television, content production and out-of-home businesses.

The year 2017 saw Media Prima build upon the new business initiatives that were launched in 2016 to generate new revenue streams for the Group. These include the expansion of tonton into new markets in the region. Media Prima Television Networks (“MPTN”) recently partnered with Singapore’s key telecommunications provider Singtel to expand tonton’s customer base into Singapore. On the home shopping front, MPTN’s CJ Wow Shop has expanded its presence to target Chinese audience by launching the Mandarin broadcast on ntv7 and 8TV. CJ Wow Shop also introduced live broadcast and increased broadcasting hours. The moves have yielded positive results, demonstrated by the 15.6% growth in net sales Quarter on Quarter (1QFY17 vs 4QFY16). Media Prima Radio Networks(“MPRN”) too ramped up its already strong digital presence by launching its podcast platform, Ais Kacang and e-commerce service, SuperDeals. The new initiatives should provide MPRN with new ways to entice advertisers by offering an all-rounded campaign platform which includes on-air and digital space.

Meanwhile, the acquisition of Rev Asia, already a profitable company pre-acquisition is also expected to contribute positively to Media Prima Digital (“MPD”) moving forward once completed. MPD plans to bank on the new skillsets obtained from the recent acquisition to further boost its revenue via digital advertising. The acquisition also resulted in Media Prima to have the third highest digital reach in Malaysia behind only to Google and Facebook.

Media Prima’s Out-of-Home (OOH), Big Tree Outdoor (“BTO”), is expected to benefit from the rollout of assets for rapid transit concessions scheduled to commence later this year. Other OOH platforms are expected to maintain its high occupancy rates throughout the year. This is especially true for digital advertising solutions/assets which are currently contributing 10% to BTO’s total revenue. The Group’s Content Creation arm, Primeworks Studios will explore potential new intellectual properties for animation and co-production with external broadcasters while expanding the current content sales in the overseas market. Primeworks, with a content library of over 100k hours, has made significant inroads into the OTT space by selling content to Netflix and Iflix.

In Print media, the New Straits Times Press (M) Berhad (“NSTP”) will continue to defend its traditional print business while continuous cost rationalisation initiatives will continue to be implemented while the digital products and services launched in 2016 such as Full-A-Mark remain in a period of gestation. NSTP’s digital and online news platforms enjoy a significant reach amongst Malaysian consumers. NSTP’s three online portals namely, New Straits Times, MyMetro and BH Online record monthly unique visitors of 18.3 million.

Dato’ Sri Amrin concluded that while the Group recognised the tough operating environment’s impact on the Group’s performance, Media Prima will evolve from a traditional media Group into one that is digital first with diversified revenue streams via a transformation initiative that is already underway. “Though we are continuously reviewing our businesses, the Group will forge ahead with our transformation efforts to remain relevant and defend our leadership position. We will continue to improve cost efficiencies and make prudent investments in areas that will provide us with a competitive advantage,” he said.

END

For further information, kindly contact:
Media Prima Berhad at: 603- 1300 300 672 Ext: 8949 or 03 – 2724 8949
Azlan Abdul Aziz at [email protected]/ or 6012-614 0522
www.mediaprima.com.my/http://twitter.com/MPBtalk

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